T-Bills Trading Like Junk Bonds Ahead of Debt-Ceiling X-Date
Posted By Peter Coyne | 2023-05-24 07:40:02
As the US inches closer and closer to a debt ceiling debacle, some short-term government bonds are trading like junk.
- June 1st is the drop dead date at which the Treasury is expected to exhaust its borrowing capacity without an increase in the debt limit.
- Treasury bills maturing on that date are currently yielding more than 6%. That’s more than some corporate bonds sold by junk-rated companies.